Ready-to-Drink (RTD) Tea - Nepal

The Ready-to-Drink (RTD) Tea market in Nepal has been experiencing significant growth in recent years.

Customer preferences: Nepalese consumers have shown a growing preference for convenient and healthy beverage options, which has contributed to the rise in popularity of RTD tea. The ready-to-drink format allows consumers to enjoy tea on-the-go without the need for brewing or steeping. Additionally, RTD tea is often perceived as a healthier alternative to carbonated soft drinks, as it is typically made with natural ingredients and contains fewer calories and sugar.

Trends in the market: One of the key trends in the RTD tea market in Nepal is the increasing demand for flavored and functional teas. Consumers are seeking unique and innovative flavors, such as fruit-infused teas or herbal blends, which provide a refreshing and exotic taste experience. Moreover, there is a growing interest in functional teas that offer health benefits, such as detoxification or stress relief. This trend is driven by the rising health consciousness among consumers and their desire to incorporate wellness into their daily routines. Another notable trend is the emergence of local and artisanal tea brands in Nepal. These brands focus on producing high-quality teas using traditional brewing methods and locally sourced ingredients. They cater to consumers who value authenticity and are willing to pay a premium for a premium tea experience. This trend reflects the increasing appreciation for Nepalese tea culture and the desire to support local businesses.

Local special circumstances: Nepal is known for its rich tea heritage and high-quality tea production. The country's unique geography and climate create favorable conditions for cultivating tea, resulting in teas with distinct flavors and aromas. This has positioned Nepal as a niche player in the global tea market, attracting tea enthusiasts and connoisseurs. The local tea industry has capitalized on this reputation by promoting Nepalese teas as premium and specialty products. This has not only boosted domestic consumption but also led to an increase in tea exports, further driving the growth of the RTD tea market.

Underlying macroeconomic factors: The growing middle-class population and increasing disposable incomes in Nepal have played a significant role in the development of the RTD tea market. As more consumers have the financial means to spend on premium and convenient products, the demand for RTD tea has surged. Furthermore, urbanization and changing lifestyles have contributed to the rise in on-the-go consumption, making RTD tea a popular choice among busy urban dwellers. In conclusion, the Ready-to-Drink (RTD) Tea market in Nepal has experienced significant growth due to the preferences of Nepalese consumers for convenient and healthy beverage options. The market has witnessed trends such as the demand for flavored and functional teas, as well as the emergence of local and artisanal tea brands. The unique tea heritage and favorable macroeconomic factors in Nepal have further contributed to the growth of the RTD tea market.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.